Replies to post #100796 on Savvy Trades and Investments

[littlejohn]

Those new homes sold will be some of

first losers when hitting resale

market in future due to being

built at very high costs...

At some point their biz plan may

be reviewed as reckless in the future

in hindsight...

But they did manage to produce one

more good quarter with the inflated

housing prices...

Rate rises hint that their days in the

sun are over for a spell...

Existing home sale market came

out with lower orders recently

in news highlights...

Resale formula has changed to,,,

'Sell at a lower price to allow for the

increased cost due to higher interest

rates for the prospective buyer'...

And the price dives with small increases

in the cost of mortgage interest...because

prices are high...


So we watch...LJ

[cliffvb]

LEN I was surprised that they expect new orders in Q4 to be higher than they were last quarter despite higher mortgage rates. LEN and most all of the other builders are now trading below tangible book value. There remains a large shortage of housing as evidenced by rapidly rising rents.

LEN is now trading up about 2% as investors reassess their latest report.